Inclusion would make milestone in China’s bid to become an economic power

Antalya, Turkey—China’s yuan should be included in the elite basket of currencies that comprise the International Monetary Fund’s lending reserves, the head of the IMF said Friday, paving the way for the board to approve the move later this month.

Winning IMF reserve-currency status for the yuan would mark a milestone in China’s efforts to establish the country as a global economic power. The move should help the country flex its financial muscle around the world and boost demand by central banks and investors to hold assets...